Stuck in a bad job? The dynamics of poor-quality employment in Chile, 2004–2019

Abstract

This paper studies whether workers become “stuck” in poor-quality employment, or whether poor-quality employment can serve as a “stepping stone” towards better job opportunities in the Chilean labor market. It does this from a multidimensional and longitudinal perspective, taking into account the intensity of the deprivation that workers face. In particular, it examines how workers move between good and bad jobs, and between these jobs, unemployment and inactivity and also discusses the respective determinants of these changes. The results of this analysis show that the deprivation levels among women in the labour market are persistently higher those of men, and that workers do indeed become stuck in bad jobs.

Thus, the paper presents a methodology for measuring chronic deprivation in the labor market, an issue on which neither the literature on job quality nor the literature on poor-quality employment (or bad jobs) has focused. It concludes by discussing the policy implications of this research.